The Federal Emergency Management Agency (FEMA) and Mitigating Loss

1. What is an asset, and what is a loss; and, what are the implications of asset losses?
2. What is the Federal Emergency Management Agency?
3. What is an acceptable level of risk, and how are potential risk reduction opportunities identified?
4. What is mitigation, and what are some impediments to mitigation? What recommendation would you make to overcome these impediments to mitigation?

Solution Preview

1. Assets are economic resources. An asset is considered to be "anything tangible/untagible that can be owned or controlled to produce value and that is held to high economic value." Assets represent ownership of value that can be converted into cash. Cash itself is an asset. A loss (capital loss) is the amount by which the purcahse price of an asset is higher than the selling price. A loss can result when an asset is sold. When an asset is lost there may be some tax implications. If you have increased gains for a current tax year but also a loss of sale from another capital asset your loss will need to subtracted first from the gain to find your net/loss for that year. The amount of the net short-term gain will then be taxed at a marginal tax rate. If the loss is higher than the gain you can carry the losses forward to offset next year's income.

When resulting transactions nets amounts that are lower than the original purchase value-asset loss occurs. This kind of loss can affect business owners in several ways. This can include the decisions made regarding personal property and investments: Business owners may ...

Solution Summary

This solution discusses assets, the role of FEMA, risk, and mitigating risk in emergency situations in approximately 700 words.